Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

Johnson & Johnson (NYSE:JNJ) was founded in 1886. Since that time, Johnson & Johnson (JNJ) has grown to become the largest health care business in the world.

The company has a market cap of $276.7 billion, generates over $70 billion a year in sales, and $16 billion a year in profits. JNJ is a favorite stock among several value investors. Dinald Yacktman, Richard Pzena, and Joel Greenblatt have large positions in the stock. Even Warren Buffett has a small stake in the company. Hedge funds, overall, own only 1.6% of the stock’s outstanding shares. They are underweight JNJ but this isn’t uncommon for stable, dividend paying stocks.

Niloo / Shutterstock.com

You may have heard about the 3 most important aspects of real estate – location, location, location. Johnson & Johnson has its own 3 most important aspects – stability, stability, stability. Johnson & Johnson is perhaps the most stable ‘blue chip’ dividend growth stock investment around today. The company’s investor relations page gives a few amazing statistics about the companies consistency:

“Our consistent performance has enabled us to deliver an exceptional track record of growth that few, if any, companies can claim: 31 consecutive years of adjusted earnings increases and 53 consecutive years of dividend increases.”

There is a lot of (well deserved) discussion about the 52 Dividend Aristocrats– stocks that have paid increasing dividends for 25 or more consecutive years. Johnson & Johnson is a Dividend Aristocrat twice over.

Johnson & Johnson is a member of a far more exclusive group; the ‘gold standard’ of dividend stocks. Johnson & Johnson is a Dividend King. Dividend Kings are stocks with 50+ consecutive years of dividend increases.Click here to see all 16 Dividend Kings analyzed. The image below shows the company’s dividend growth history:

Johnson & Johnson’s stock price standard deviation shows just how stable and respected the business is… The company has a stock price standard deviation over the last decade of just 16.2%. This is the lowest of any large cap stock in the Sure Dividend database. The next two lowest are utilities; Southern Company (SO) and Consolidated Edison (ED) have long-term stock price standard deviations of 17.8% and 16.7%, respectively. Johnson & Johnson’s stock is less volatile than even high quality utilities.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.

Subscribe me to Insider Monkey's Free Daily Newsletter

This is a FREE report from Insider Monkey. Credit Card is NOT required.

We may use your email to send marketing emails about our services. Click here to read our privacy policy.